Getting Out of the Rental Rut
There's nothing wrong with renting your home. In fact, in certain circumstances, it's the smarter choice. However, if you've been renting for what seems like forever, you might have started thinking about wanting to get out of the "rental rut."
While it's nice to know you can call the landlord any time there's a problem with the home, there are some major advantages to buying a house of your own. If you've been on the fence about finally taking the leap into home-ownership, consider these important benefits.
- You'll Build Equity
One of the biggest advantages of buying a house is that you're no longer handing over your hard-earned money to pay for someone else's property. Each time you pay your rent, that money is gone, and you have nothing to show for it. Whenever you make an improvement to the home you're renting, or you take care of routine maintenance, you're building your landlords equity – instead of your own. Buying a house allows you to start building your equity. It's a long-term investment that you can sell or take a loan against in the future.
- You'll Have More Stability
When you rent, you don't have any control over changes your landlord might decide to make. Not only can your monthly rent payments suddenly go up, but your landlord could also decide to sell the property – meaning you'll have to find a new place to stay. Buying a house gives you a lifetime of predictability and stability. If you get a fixed mortgage, your payments will always remain the same. As long as you keep making those payments, no one can ever tell you it's time for you to go.
- You Might Save on Taxes
In addition to being a great long-term investment, buying a house will likely also create short-term benefits in the form of tax savings. You may have access to the mortgage interest payment deduction, tax write-offs, and other tax deductions that aren't available to renters. This could allow you to start making money back on your investment right away.
- You Can Give it a Personal Touch
Another huge advantage of buying a house is that once you do, it's yours. This means that you don't have to ask permission to paint, change out the carpets, or completely update the landscaping. When you own your home, you're free to give it your own personal touch in any way you see fit.
- It's a Great Time to Buy
It's one thing to understand the advantages of buying a house. It's quite another to feel financially prepared to do so. Luckily, the current economic conditions are perfect for buying a house. Interest rates are at historic lows, so locking in a mortgage today can save you tens of thousands of dollars over the lifetime of your loan. There are also many programs available that can allow you to buy a home with little to no money down.
If you've been thinking about buying a home, now is a great time to do it. However, the inventory of homes for sale has also reached record lows. Since there are fewer houses on the market, it might take you longer to find your dream home. Starting the process of buying a house sooner, rather than later, will give you the best chance to take advantage of these optimal conditions and finally get out of that rental rut.